12 States Where Homeowners Are Deep Underwater

florida foreclosure

Despite the housing recovery, 10.4 million or 21.5 per cent of all residential properties continued to be underwater at the end of Q4 2012, according to latest data by CoreLogic.

The value of negative equity – when homeowners owe more on their mortgages than their home is worth – fell to $628 billion, from $670 billion the previous quarter.

The Sandy states in particular continue to struggle.

1.7 million moved to positive equity in 2012, and the trend should continue into 2013. But some parts of the country will recover faster than others.

Using CoreLogic data, we ranked the 12 states that had the most underwater mortgages as a percentage of all mortgages i.e. negative equity share.

Note: Loan-to-Value (LTV) ratio is a measure used by financial institutions to gauge risk before approving a mortgage. The higher the LTV ratio, the higher the risk and the more expensive the loan.

Idaho

Negative equity share:
21.0 per cent

Total mortgages:
247,000

Average loan-to-value ratio:
73.3 per cent

Source: CoreLogic

Mississippi

Negative equity share:
22.7 per cent

Total mortgages:
48,000

Average loan-to-value ratio:
77.7 per cent

Source: CoreLogic

Maryland

Negative equity share:
23.5 per cent

Total mortgages:
1,362,000

Average loan-to-value ratio:
70.0 per cent

Source: CoreLogic

Rhode Island

Negative equity share:
23.4 per cent

Total mortgages:
228,000

Average loan-to-value ratio:
66.6 per cent

Source: CoreLogic

Ohio

Negative equity share:
25.0 per cent

Total mortgages:
2,142,000

Average loan-to-value ratio:
76.6 per cent

Source: CoreLogic

California

Negative equity share:
25.2 per cent

Total mortgages:
6,758,000

Average loan-to-value ratio:
67.1 per cent

Source: CoreLogic

Illinois

Negative equity share:
28.4 per cent

Total mortgages:
2,227,000

Average loan-to-value ratio:
77.3 per cent

Source: CoreLogic

Michigan

Negative equity share:
31.9 per cent

Total mortgages:
1,372,000

Average loan-to-value ratio:
80.8 per cent

Source: CoreLogic

Georgia

Negative equity share:
33.8 per cent

Total mortgages:
1,612,000

Average loan-to-value ratio:
82.6 per cent

Source: CoreLogic

Arizona

Negative equity share:
34.9 per cent

Total mortgages:
1,306,000

Average loan-to-value ratio:
82.1 per cent

Source: CoreLogic

Florida

Negative equity share:
40.2 per cent

Total mortgages:
4,166,000

Average loan-to-value ratio:
83.6 per cent

Source: CoreLogic

Nevada

Negative equity share:
52.4 per cent

Total mortgages:
548,000

Average loan-to-value ratio:
103.7 per cent

Source: CoreLogic

Now look at where home prices are set to rise the most by 2017...

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